James Franklin is a great hire for Virginia Tech. He’s the caliber of recruiter and program-builder who could have the Hokies at the top of the ACC, and even redirect Penn State’s well-established recruiting pipeline in Virginia from Happy Valley to Blacksburg.
Yet, while from Penn State’s perspective, Virginia Tech is one of the worst possible landing spots for Franklin, the Hokies are still doing the Nittany Lions a huge favor by finalizing a deal with their former head coach just 36 days after he was fired.
There was a major sticker-shock to Franklin’s firing. Not just that, it came after a three-game losing streak and one season after he led Penn State to the College Football Playoff semifinal and within a few plays of the national championship game, but also the $50 million buyout that it carried.
However, it was slowly revealed that Penn State would almost certainly not be on the hook for the eight-figure payment after terminating Franklin’s contract, which ran through 2031. That’s because of the duty to mitigate and the offset clause, which required him to seek new employment if fired, and that Penn State’s buyout would be offset by the salary that he makes at his next job in football.
According to Pete Thamel’s report for ESPN, Franklin and Virginia Tech are finalizing their deal on Monday with the expectation that it will be completed in the near future. Once it is, we’ll get to see just how much Penn State is expected to save over the life of his contract, which is crucial because money goes farther than ever now that athletic departments can pay athletes directly through revenue-sharing.
James Franklin and Penn State agree to renegotiated buyout
However, prior to Franklin reaching a deal with his new program, he was reportedly negotiating with his former one. According to Brandon Marcello of CBS Sports, Penn State and Franklin agreed to lower his buyout from $49 million to just $9 million, which lifts a huge burden off Penn State's shoulders.
Penn State and James Franklin recently negotiated his buyout down to $9 million, sources tell @CBSSports.
— Brandon Marcello (@bmarcello) November 17, 2025
His contract called for a buyout of $49 million to be paid through 2031, which could be offset by future earning at another job. He’s now headed to Virginia Tech. pic.twitter.com/cWrg2EfPdJ
The offset clause in his contract would have lowered the cost of Franklin's buyout significantly, but by negotiating with him, Penn State avoided a far-fetched nightmare scenario in which Franklin took a low-ball offer from the Hokies with an agreement that they would invest the rest of the money he would have been paid into the roster while Penn State essnetially pays his salary.